Community Association Fundamentals
EACH COMMON-INTEREST COMMUNITY has its own history, personality,
attributes and challenges, but all associations share common characteristics and
core principles. CAI developed the Community Associ
a better conceptual understanding of how associ
residents and association leaders.
ion Fundamentals to foster
ions function and the roles of
les at the heart
We hope this primer will help people recognize the core pi
of the community association model and, even more importantly, inspire effective,
enlightened leadership and responsible, engaged citizenship.
1. Associations ensure that the collective rights and interests of homeowners are respected
and preserved,
2. Associations are the most local form of representative democracy, with leaders elected by
their neighbors to govern in the best interest of all residents.
3. Associations provide services and amenities to residents, protect property values and
meet the established expectations of homeowners
4. Associations succeed when they cultivate a true sense of community, active homeowner
involvement and a culture of building consensus.
5. Association homeowners have the right to elect their community leaders and to use the
democratic process to determine the policies that will protect their investments.
6. Association homeowners choose where to live and accept a contractual responsibility
to abide by established policies and meet their financial obligations to the association.
7. Association leaders protect the commun ty's financial health by using established
management practices and sound business principles.
8. Association leaders have a legal and ethical obligation to adhere to the association's
governing documents and abide by all applicable laws.
9. Association leaders seek an effective balance between the preferences of individual
residents and the collective rights of homeowners.
10. Assocation leaders and residents should be reasonable, flexible ard apen to the
poss bility—and benefits—of compromise
Far more information on CA visit wwreaianline org or cll (288) 24-4321 (M-F, 9-6:30 ET)
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community
ASSOCIATIONS INSTITUTEModel Code of Ethics for Community
Association Board Members
‘This model code of ethics is not meant to address every potential ethical dilemma encountered
by a community association board member, but is offered as a basic framework that can be
rrodified and adopted by any commor-interest community
Board members should:
Strive at all times to serve the best interests of the association as a whole regardless
of their personal interests.
Use sound judgment to make the best possible business decisions for the association,
taking into consideration all available information, circumstances and resources.
‘Act within the bourdaries of their authority as defined by law and the governing
documents of the association.
Provide opportunities for residents to comment on decisions facing the association
Perform their duties without bias for or against any individual or group of owners
‘or non-owner residents,
Disclose personal or professional relationships with any company or individual
who has or is seeking to have a business relationship with the association.
Conduct open, fair and well-publicized elections.
Always speak with one voice, supporting all duly-adopted board decisions even if
the board member was in the minority regarding actions that may nat have obtained
unanimous consent.
Board members should not:
Reveal carfidential informat ar provided by contractors ar share informaticn with
those biddirg fer association contracts urless specif cally authorized by the board,
Make unauthorized promises to a contractor or bidder,
Advocate or support any action or activity that violates a law or regulatory requirement.
Use their positions or decision-making authority for personal gain or to seek
advantage over another owner or non-owner resident.
Spend urauthor zed association funes far thei awn personal use ar berefi
Accept any gifts—directly or indirectly—from owners, residents, contractors or suppliers.
Misrepresent known facts in any issue involving association business.
Divulge personal information about any association owner, resident or employee
that was obtained in the performance of board duties.
Make personal attacks on colleagues, staff or residents.
Harass, threaten or attempt through any means to control or instill fear in any board
member, owner, resident, employee or contractor,
Reveal to any owner, resident or other third party the discussions, decisions
and comments made at any meeting of the board properly closed
cor held in executive session.
hy
Visit wavw.caionline.org; write caiinfo@caionline.org; com) munity
call (888) 224-4321 (M-F, 9-6:30 ET) centRights and Responsibilities
for Better Communities
Principles for Homeowners and Community Leaders
More than a destination at the end of the day, 2 community is @ place people want to call home
and where they feel at home. This goal is best achieved when homeowners, non-owner res:
dents and association leaders recognize and accept their rights and responsibilities. This entails,
strking a reasonable balance between the proferences of individual homeowners and the best
interests of the community as a whole. it is with this challenge in mind that Corsmunity
Associations Institute (CAl) developed Rights and Responsibilities for Better Communities.
Rights and Responsibilities can serve as an important guidepost for all those involved in the
community—board and committee members, community managers, hameowners and non-
owner residents,
Homeowners Have the Right To:
A responsive and competent community association,
Honest, fair and respectful treatment by community leaders and managers.
Participate in governing the community association by attending meetings, serving
‘on committees and standing for election.
‘Access appropriate association books and records.
Prudent expenditure of fees and other assessments.
Live in a community where the property is maintained according to established standards.
Fair treatment regarding financial and other association obligations, including the opportunity
to discuss payment plans and options with the association before foreclosure is initiated,
Receive all documents that address rules and regulations governing the community
association—if not prior to purchase and settlement by a real estate agent or attorney,
then upon joining the community
Appeal to appropriate community leaders thase decisions affecting non-routine
financial responsiblities or propery rights.
Homeowners Have the Responsibility To:
Read and comply with the governing documents of the community,
Maintain their property according to established standards.
‘Treat association leaders honestly and with respect.
Vote in community elections and on other issues.
Pay association assessments and charges on time.
Contact association leaders or managers, if necessary, to discuss financial obligations
and altemative payment arrangements.
Request reconsideration of material decisions that personally affect them.
Provide current contact information to association leaders or managers to help ensure
they receive infoeration from the community
Ensure that those who reside on ther property (e.g, tenants, relatives, fiends)
adhere to all rules and regulations.
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